December 2005

TELEVISION
TV Charity Drives: Toys for Tots, Money for Stations
New Study on Local TV War Coverage
Dropping Of Cable Provision May Spur Another DTV Bill
Take Your Cable Channels With You on the Road
Love is no longer color-coded on TV
A Korean TV Show Reports, and the Network Cancels It

POLICYMAKERS
A 2-1 FCC?

INTERNET
Broadband Firms Fight For Premium Treatment
$1 Billion AOL Stake For Google Approved
Future is bright for Internet ads
Engines for World Growth
FTC Sees Spam Law Working

QUICKLY -- News Corp to face trial on charges of breaches; News Corp re-ups=
=20
Ailes for $25m; Sprint to Buy Out Nextel Partners; Wireless To Approach 50%=
=20
Telecom Revenue

TELEVISION

TV CHARITY DRIVES: TOYS FOR TOTS, MONEY FOR STATIONS
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
Washington (DC)-area television stations have enlisted the help of sponsors=
=20
for public service campaigns. The campaigns raise money and other donations=
=20
for deserving recipients. But the efforts raise money for something else,=
=20
too: the TV stations. Companies pay the stations to be a sponsors. The=20
payments buy TV ads that tout the charitable campaigns and the companies'=
=20
involvement in them. The stations, in turn, often feature their paying=20
sponsors on news reports about the charitable drives, usually without=20
disclosing to viewers that the station is receiving money from the ad buys.=
=20
Station representatives have said such "community outreach" drives are a=20
winning proposition for all parties: The charity reaps publicity and public=
=20
contributions, and the station and its corporate partners gain recognition=
=20
and goodwill. But critics have said the practice has troubling aspects.=20
Other local stations said they resist turning sponsors into news because=20
that might suggest that the sponsor has paid to influence coverage -- a=20
violation not just of journalistic practice, but potentially of federal=20
rules against payola. One journalism ethics expert, Bob Steele of the St.=
=20
Petersburg, Fla.-based Poynter Institute, said such coverage is "rife with=
=20
ethical potholes and land mines" because it calls into question the=20
stations' journalistic independence. News coverage "should not be unduly=20
influenced by commercial considerations, or by developing revenue streams,=
=20
or by maximizing ad dollars, or by pleasing our business clients," he said.=
=20
"Those factors are illegitimate forces that will undermine journalistic=20
credibility."
http://www.washingtonpost.com/wp-dyn/content/article/2005/12/20/AR200512...
1804.html
(requires registration)

NEW STUDY ON LOCAL TV WAR COVERAGE
[SOURCE: Grand Rapids Institute for Information Democracy press release]
The Grand Rapids Institute for Information Democracy (GRIID) has released a=
=20
new study entitled =93Violence, Soldier Deaths and Omissions: Local TV News=
=20
Coverage of the Wars in Afghanistan and Iraq.=94 This study looks at war=20
coverage by Grand Rapids TV broadcasters during the period from August 1 to=
=20
November 8, 2005. Key findings of this study are: 1) The majority of all=20
local TV coverage about the US wars in Iraq and Afghanistan was focused on=
=20
area soldier deaths or local soldiers returning home. 2) Coverage of Iraq=
=20
was primarily focused on violence with little contextual information=20
provided. 3) Coverage of Afghanistan was almost nonexistent with only three=
=20
stories about Afghanistan appearing during the study period on all three=20
stations combined. 4) The primary sources used in news coverage were US=20
government officials, military personnel, or friends and family of those in=
=20
the military. 5) There were very few Iraqi voices (5) and no Afghani voices=
=20
in the entire 72 day study period. 6) There were very few stories with=20
dissenting voices. Cindy Sheehan was the primary dissenting voice in most=
=20
anti-was stories.
http://www.griid.org/localnews/mediaalert.php?alertId=3D17
See full report online at:
http://www.griid.org/pdfs/War_Coverage_2005.pdf

DROPPING OF CABLE PROVISION MAY SPUR ANOTHER DTV BILL
[SOURCE: CongressDaily, AUTHOR: Drew Clark]
While rival industry groups praised House passage of a firm deadline for=20
the nation's transition to digital television broadcasts, the dropping of=
=20
another digital TV-related provision from the budget reconciliation measure=
=20
might spark further debate. At issue is the absence from the final bill of=
=20
a section that would have authorized the cable industry to "down-convert"=
=20
high-definition digital signals into standard-definition analog signals.=20
The lack of such a provision might jeopardize the vast majority of cable TV=
=20
customers -- exposing them to the possibility that their televisions will=
=20
also go dark after Feb. 17, 2009, the day set by the reconciliation bill=20
for broadcasters to relinquish use of the analog spectrum. That, in turn,=
=20
might rachet up the pressure on Congress to consider a follow-on digital=20
television bill in the near future.
http://www.njtelecomupdate.com/lenya/telco/live/tb-XSII1135113513585.html
* House's DTV Decision Spurs Reaction
[SOURCE: Broadcasting&Cable, AUTHOR: ]
http://www.broadcastingcable.com/article/CA6292928.html?display=3DBreaki...
News&referral=3DSUPP
(free access for Benton's Headlines subscribers)

TAKE YOUR CABLE CHANNELS WITH YOU ON THE ROAD
[SOURCE: New York Times, AUTHOR: Ken Belson]
A profile of the creators of Slingbox, a way to let cable and satellite=20
television customers watch what was on their home televisions while they=20
were on the road. The size of a shoe, it sells for $250 and unlike TiVo=20
does not require a monthly subscription. The box can be hooked to a cable=
=20
set-top box or a digital video recorder, and must be linked to a broadband=
=20
line so the video can be "streamed" to a laptop or other device. Faster=20
connection speeds provide better video quality. Users install software on=
=20
laptops that communicates with the Slingbox over a high-speed Internet=20
connection at a hotel or other remote location. (Again, faster connection=
=20
speeds make for better viewing.) Users can watch what is playing live on=20
the cable or satellite service at home, or anything stored on a digital=20
video recorder. A virtual remote control that appears on the laptop allows=
=20
users to change channels or play, pause or rewind a recorded program.
http://www.nytimes.com/2005/12/21/technology/21sling.html?pagewanted=3Dall
(requires registration)
* Now I can watch my TV from anywhere on Earth
http://www.csmonitor.com/2005/1221/p16s01-cogn.html

LOVE IS NO LONGER COLOR-CODED ON TV
[SOURCE: USAToday, AUTHOR: Ann Oldenburg]
Interracial pairings are integral to several of today's top-rated TV shows,=
=20
including Grey's, Lost, My Name Is Earl and ER. But these on-screen=20
pairings no longer draw the kind of attention and reaction they did in the=
=20
'60s and '70s. Romances between people of different colors are being=20
handled more offhandedly, with race being neither an issue nor much of a=20
plot point.
http://www.usatoday.com/printedition/life/20051221/d_cover21.art.htm

A KOREAN TV SHOW REPORTS, AND THE NETWORK CANCELS IT
[SOURCE: New York Times, AUTHOR: James Brooke]
A classic case of kill the messenger as a top Korean scientist is revealed=
=20
to be faking data -- and the TV program that broke the story takes the fall.
http://www.nytimes.com/2005/12/21/business/media/21cell.html?pagewanted=...
ll
(requires registration)

POLICYMAKERS

A 2-1 FCC?
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] Because he has some problems with the current version of the=
=20
E911 bill, Sen Jay Rockefeller (D-WV) has put a hold on the bill,=20
preventing a vote on it. Because he's a supporter of the E911 bill, Sen=20
John Sununu (R-NH) retaliated by putting a hold on the nomination of=20
Michael Copps for another term as FCC Commissioner. Because Copps'=20
nomination is a "package deal" with Republican FCC nominee Deborah Tate,=20
Senate Minority Leader Harry Reid (D-NV) retaliated with a hold on Tate's=
=20
nomination. Ah, could we try a little holiday cheer,=20
gentlemen? Commissioner Copps can continue (despite the fact that his term=
=20
expired) until the current Congress adjourns at the end of 2006. So the=20
five-member FCC is now 2 Democrats and one Republican. Since the one=20
Republican is the Chairman and controls the agenda, big ticket items with=
=20
real divergences are not coming up for vote. That means no major business=
=20
will get done until Tate is confirmed and has a chance to come up to speed.=
=20
The biggest losers in this are big media companies, especially Comcast,=20
Time Warner and Adelphia. All the big media companies have been waiting for=
=20
a majority of Republicans so they can try again to relax the media=20
ownership rules. But the ones who most urgently need an FCC majority (or at=
=20
least a 2-2 split) are Comcast and Time Warner. There is no way their=20
merger can move forward without Republicans. Given how the Democrats=20
negotiated for conditions on the Verizon-MCI and SBC-AT&T mergers, Comcast=
=20
and Time Warner really want a solid Republican majority if they have any=20
hope of avoiding major conditions. They also have pressure to get this deal=
=20
done quickly, as the longer it remains pending, the longer investors and=20
Adelphia's bankruptcy creditors have to get cold feet. It is now entirely=
=20
possible that the Senate will adjourn without voting on Tate and Copps.=20
When they return, they will not only face any leftover legislative business=
=20
from this session, but the highly anticipated, extremely partisan,=20
knock-down drag-out Alito Confirmation Smackdown. Unbelievably, it becomes=
=20
possible to imagine the Tate-Copps package held up until February.
http://www.wetmachine.com//item/399

INTERNET

BROADBAND FIRMS FIGHT FOR PREMIUM TREATMENT
[SOURCE: Technology Daily, AUTHOR: David Hatch]
AT&T, BellSouth and Verizon Communications are fiercely lobbying to retain=
=20
language in a pending House telecommunications bill that would permit them=
=20
to offer premium tiers of high-speed Internet service favoring their=20
content. The draft bill, floated recently by Republicans on the House=20
Energy and Commerce Committee, contains "network neutrality" provisions=20
intended to prohibit telecom and cable companies from blocking or impeding=
=20
competitors on their high-speed networks. But the draft makes an exception=
=20
for companies to offer multiple tiers, resulting in potentially faster=20
transmission rates for them and slower speeds for competitors. "Do you want=
=20
the Internet ... of the last 10 years, or do you want it to look like a=20
cable system?" asked Gerry Waldron, an attorney representing a coalition of=
=20
Internet companies. "They're fooling around with the basic DNA of the=20
Internet here," added Art Brodsky, a spokesman for Public Knowledge. "What=
=20
they're trying to do is make it their Internet." The coalition members said=
=20
they recognize that communications carriers have a right to manage their=20
networks to carry bandwidth-hungry video without interruption.
http://www.njtelecomupdate.com/lenya/telco/live/tb-TMKJ1135117419682.html

$1 BILLION AOL STAKE FOR GOOGLE APPROVED
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
Time Warner approved Google's $1 billion investment in its America Online=
=20
unit yesterday, a deal aimed at giving both companies a greater share of=20
the burgeoning online advertising business. Company executives also=20
characterized the deal, which gives Google a 5 percent stake in=20
Dulles-based AOL, as an opportunity to cross-pollinate Time Warner's vast=
=20
media library with Google's highly profitable online advertising business.=
=20
As part of the deal, Google also will tap AOL's instant-messaging customer=
=20
base of 43 million users, integrating it with Google Talk, a recently=20
released product with far fewer users. That pits AOL and Google against=20
rivals Microsoft and Yahoo, which next year plan to integrate their=20
instant-messaging systems. Google will also be able to access more of AOL's=
=20
content, such as music videos and television shows, through its media servi=
ces.
http://www.washingtonpost.com/wp-dyn/content/article/2005/12/20/AR200512...
1388.html
(requires registration)
* Bumpy Road Led to Alliance Of AOL, Google
http://online.wsj.com/article/SB113512960036228044.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* AOL and Google Formalize Partnership to Include Shared Selling of Ads
http://www.nytimes.com/2005/12/21/technology/21aol.html?pagewanted=3Dall

FUTURE IS BRIGHT FOR INTERNET ADS
[SOURCE: Reuters, AUTHOR: Paul Bond]
JMP Securities on Tuesday raised its global advertising forecast for not=20
only this year but for next year and beyond. The firm now expects the=20
global online ad market to grow at a 25% clip annually for the next five=20
years, up from a previous forecast in the low 20% range. In the next year=
=20
the Wall Street firm expects the online ad market to grow to $26.4 billion=
=20
worldwide and to $33.2 billion in 2007. Forrester Research, meanwhile, said=
=20
that those who have the Internet are spending more than 30% of their media=
=20
time nowadays online, a metric that prompted JMP to increase its market=20
share expectations for Internet advertising in the U.S. JMP now expects=20
online advertising at $13.2 billion in the United States this year, or 4.7%=
=20
of total advertising revenue, to soar to $35.9 billion in 2010, when the=20
Internet will command 11.1% of all ad dollars spent.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2005-12-21T110301Z_01_ROB139698_RTRUKOC_0_US-MEDIA-INTERNET.xml

ENGINES FOR WORLD GROWTH
[SOURCE: National Telecommunications and Information Administration]
In a December 19 speech, outgoing NTIA Director Michael Gallagher=20
identified US priorities in telecom policy: 1) President Bush has a vision=
=20
for making advanced technologies available to all Americans =AD by creating=
=20
the economic and regulatory environment to enhance competition and promote=
=20
innovation; 2) The telecom sector is growing dynamically, and many new=20
technologies show great potential for expanding broadband deployment. IP=
=20
services are having a very dramatic and positive impact on the U.S.=20
economy; 3) This Administration is committed to spectrum and broadband=20
policies that create a domestic and international environment for economic=
=20
growth by removing barriers to the implementation of U.S. technologies and=
=20
services; and 4) the President=92s goal will ensure that all Americans have=
=20
the personal and economic benefits of high-speed Internet applications and=
=20
services.
http://www.ntia.doc.gov/ntiahome/speeches/2005/MGallagher_DEW_12192005.htm
* Tauke Praises Departing NTIA Head
http://www.broadcastingcable.com/article/CA6293251?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

FTC SEES SPAM LAW WORKING
[SOURCE: MediaWeek, AUTHOR: Brian Morrissey]
The CAN-SPAM Act, which went into effect Jan. 1, 2004, has helped to=20
improve the problem of spam, the Federal Trade Commission said in a=20
progress report to Congress. The FTC did not offer any hard numbers, but MX=
=20
Logic, an anti-spam software maker, reported 67 percent of the e-mail going=
=20
through its system as spam in the first eight months of 2005. That's a 9=20
percent decrease from the amount MX Logic found the year before.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
1182

QUICKLY

NEWS CORP TO FACE TRIAL ON CHARGES OF BREACHES
[SOURCE: Financial Times, AUTHOR: Sundeep Tucker]
Rupert Murdoch's News Corporation will face trial over allegations that it=
=20
broke promises to shareholders about its "poison pill" takeover defences,=
=20
after a US judge rejected the media company's request that the case be=20
dismissed. The ruling follows a lawsuit filed against the company in=20
October by a group of 12 global pension and investment funds alleging that=
=20
News Corp failed to honor a pledge, made last year, to allow a shareholder=
=20
vote on changes to its poison pill policy.
http://news.ft.com/cms/s/5d8d05ba-71f3-11da-9ff7-0000779e2340.html
(requires subscription)

NEWS CORP SIGNS $25M CONTRACT WITH AILES
[SOURCE: Financial Times, AUTHOR: Joshua Chaffin]
News Corp, the global media company, has signed a new five-year, $25=20
million contract with Roger Ailes, the head of its television group. Mr=20
Ailes, an advisor to several Republican presidents, was hired in 1996 by=20
Rupert Murdoch, News Corp=92s chairman, and soon brought the fledgling Fox=
=20
News Channel to ratings dominance over its more established 24-hour news=20
rival, CNN.
http://news.ft.com/cms/s/c9eb3862-71ad-11da-836e-0000779e2340.html
(requires subscription)

SPRINT TO BUY OUT NEXTEL PARTNERS
[SOURCE: Washington Post, AUTHOR: Arshad Mohammed]
Sprint Nextel agreed yesterday to pay $6.5 billion to buy out the=20
shareholders of Nextel Partners, ending a dispute over the value of the=20
Kirkland, Wash.-based company, which offers mobile phone service under the=
=20
Nextel brand. Sprint Nextel said it would pay $28.50 per share for the=20
roughly 69 percent of Nextel Partners it does not already own. The deal is=
=20
subject to the approval of the Department of Justice and the Federal=20
Communications Commission and is expected to be completed by the end of Jun=
e.
http://www.washingtonpost.com/wp-dyn/content/article/2005/12/20/AR200512...
1528.html
(requires registration)

WIRELESS TO APPROACH 50% OF $1.2 TRILLION TELECOMMUNICATIONS REVENUE
[SOURCE: saschameinrath.com]
The Insight Research Corporation's new analysis [1] finds that "wireless=20
revenue will approach almost 49 percent of all telecommunications services=
=20
revenue by the close of 2006 and will grow to 55.6 percent of all=20
telecommunications industry revenue by 2010." Mirroring the continuing=20
stagnation in broadband penetration in the United states, Insight Research=
=20
finds that wireless market growth will be slower in North America than in=
=20
many other locations surveyed around the world.
http://www.saschameinrath.com/node/275/print
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=
=20
Friday, this service provides updates on important industry developments,=
=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
headlines( at )benton.org -- we welcome your comments.
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